Bankruptcy Law/Post Chap 7-foreclosure

QuestionI filed Chap 7 on 11/2011, and got the discharge on March 2012. Included in debts was a rental property. The bank has been paying the property taxes and insurance.

The property has been vacant for 14 months and the bank still has not taken the property. The only
notice I get is a demand for payments due, although they know about the Chap 7. They also threaten to file a default, but they haven't done that either.

If squatters break into and occupy the property, damage the property or rip of the fixtures such as copper plumbing, does Chap 7 protect me even though I am still on title to the property?

AnswerDear Will,

The answer is complicated. If the bank claims that YOU pillaged the property after the date you filed bankruptcy, you can be sued by them. Of course, they would need convincing evidence that it was you. There have even been reported cases of criminal prosecution where the owner has stripped the property.

If possible, see to it that there is insurance on the property that covers vandalism. The type of insurance that the bank has placed is probably limited to fire damage only.

Also, call the bank and see if they will take a deed in lieu of foreclosure. As soon as they have title, it won't be your responsibility.

Expertise

Leon Bayer is a bankruptcy attorney in Los Angeles, California. Leon has successfully represented clients in Los Angeles bankruptcy cases for over 30 years. He is frequently called upon by the media, the California Bar and other associations to provide insight and help educate attorneys on bankruptcy issues.
Leon Bayer es un abogado de bancarrota en Los Angeles, California. León ha representado exitosamente a clientes en casos de bancarrota de Los Ángeles por más de 30 años. Él es llamado con frecuencia en los medios de comunicación, la barra de California y otras asociaciones para proporcionar información y ayudar a educar a los abogados en materia de quiebra.
Leon's Los Angeles bankruptcy law firm is Bayer, Wishman & Leotta, founded in 1989 and has successfully represented individuals and commercial clients in bankruptcy proceedings for over 22 years. Leon Bayer and his partner, Jeff Wishman, are Certified Bankruptcy Specialists who bring experience, skill and creativity to the highly complex area of bankruptcy law. And not just a little experience.
Between the two partners, they have over 60 years of experience as bankruptcy attorneys representing consumer debtors in Los Angeles, Long Beach, Woodland Hills, North Hollywood and the entire Los Angeles basin.
As a long-standing expert, Leon is frequently called upon by the media, the California Bar and other associations to give opinions, provide insight and help educate new attorneys on bankruptcy and its changing laws. This blog is one more way that Leon Bayer and Jeff Wishman share their experience with the public and provide resources for individuals struggling with debt problems.
You can learn more about Los Angeles Bankruptcy Attorney Leon D. Bayer at Hyperlink Code

Awards and HonorsPresident, 1995-1996-Los Angeles Bankruptcy Forum; Member - Los Angeles County Bar Association Committee on Commercial Law & Bankruptcy, 1988. Law Advisory
Commission-Personal & Small Business Bankruptcy Law of the State Bar of California, 1996-2000

MR. BAYER SAYS: The big banks and credit card companys have been working overtime for many years to undermine the Consitutional right of the American people to be able to claim bankruptcy protection. In 2005 the banking lobby successfully convinced Congress and the President to make the laws and proceedures more complicated, hopeing that it will stymie legitimate people from filing bankruptcy. They succeeded in gaining these complex new legal proceedures by greasing the legislative system with hundreds of millions of dollars in "campaign contributions." The good news for the American people is that while the new laws have made the proceedures needlessly complex to the point where inexperienced people can't help but trip over the maze of new rules and regulations, the process is still doable, especially with a lawyer who is well trained and experienced in this specialty.

Past/Present ClientsI have probably handled something on the order of about 15,000 bankruptcy cases throughout my career.
Probablemente he manejado algo del orden de alrededor de 15.000 casos de quiebra en toda mi carrera.